Consider the market for coffee in Claremont. QD = 310 – 4P QS = 75 +...

Consider the market for coffee in Claremont.

QD = 310 – 4P

QS = 75 + 2P

a. What is the Marginal Revenue function in this market?

b. If there was only one coffee firm in this market, solve for the monopoly equilibrium price and quantity.

c. Draw a graph showing this market, including Supply, Demand and MR.

d. What is the deadweight loss if this market operates as a monopoly?

Expert Solution

c)

Rahul Sunny answered 2 years ago

Consider the market for coffee in Claremont. QD = 105 – 4P QS = 75 +...

Consider the market for coffee in Claremont. QD = 105 – 4P QS = 75 + 2P What is the Marginal Revenue function in this market? If there was only one coffee firm in this market, solve for the monopoly equilibrium price and quantity. Draw a graph showing this market, including Supply, Demand and MR. What is the deadweight loss if this market operates as a monopoly?

Consider a perfectly competitive market with demand and supply Qd = 3360 – 4P and Qs...

Consider a perfectly competitive market with demand and supply Qd = 3360 – 4P and Qs = -240+6P a . Find the equilibrium price and quantity in the market. b. Now suppose we impose a tax of $20 per unit on the supplier. What is the new supply curve, including the tax? c. What are the new equilibrium price and quantity in the market with the tax? d. How much of the tax incidence falls on the consumers in the...

Suppose the market demand is QD = 200−P and market supply is QS = 4P−100. A....

Suppose the market demand is QD = 200−P and market supply is QS = 4P−100. A. Suppose the government imposes a tax of t = 5 on producers. What is the incidence of the tax on consumers? Producers? B. What is the deadweight loss of the tax?

Consider the following supply and demand functions qD = 16 - 4p qS = -2 +...

Consider the following supply and demand functions qD = 16 - 4p qS = -2 + 5p Market Regulation Using the supply and demand functions from problem 1, suppose a price ceiling of p = 1 were implemented. a) How much is supplied to the market and how much is demanded? b) What is the excess demand? c) Calculate the consumer surplus, producer surplus, and welfare level without the price ceiling. d) Calculate the consumer surplus, producer surplus, welfare level,...

A free market has a demand curve Qd = 125 - 4p and supply curve Qs...

A free market has a demand curve Qd = 125 - 4p and supply curve Qs = -95 + 7p a. Draw Demand and supply curve; illustrate all changes on the graph. Calculate the equilibrium price and quantity for this market. c. Explain and indicate on your graph what occurs to this market when a $15 subsidy is placed.

2. Assume that QD = 800 - 4P and QS = -100 +P. If the government...

2. Assume that QD = 800 - 4P and QS = -100 +P. If the government imposes the price floor P=190, what is the deadweight loss of the economy? a. $1,350 b. $937.50 c. $1,012.50 d. $1,000 e. $562.50 3. Assume that QD = 800 - 4P and QS = -100 +P. If the government imposes the price ceiling P=190, what is the consumer surplus? a. $225 b. $675 c. $800 d. $1350 e. ...

Demand: Qd=90-4P, where Qd is quantity demanded and P is price Supply: Qs=-100+15P, where Qs is...

Demand: Qd=90-4P, where Qd is quantity demanded and P is price Supply: Qs=-100+15P, where Qs is quantity supplied and P is price Recall that equilibrium price was 19, while quantity was 50. At that price, the price elasticity of demand was -0.80. Now I want you to rearrange each equation, putting P on the left-hand side, and solve again for equilibrium P and Q (you ought to get the same answer). Now we want to figure the monopoly price. Take...

The demand and supply for a product is given by: Qd: 120-4P and Qs: 2P+60 Suppose...

The demand and supply for a product is given by: Qd: 120-4P and Qs: 2P+60 Suppose the government imposes a price ceiling of P=$8 calculate: 1) consumer surplus after the price ceiling 2) Producer surplus after the price ceiling 3) Deadweight Loss

The market for coffee beans is described by the following equations: Qs = 2P – 8 Qd = 16 – P

The market for coffee beans is described by the following equations: Qs = 2P – 8 Qd = 16 – P a) Suppose the government sets a price ceiling at $10. Is there a shortage? Is there a surplus? b) The government lowers the price ceiling to $5. Describe the changes in shortage/surplus. c) Now suppose a price floor/ceiling has been instituted, which causes a surplus of 9 units. Is this a floor or a ceiling? What specific price would...

Consider the market for wheat where demand is given by: Qd=120-4p and supply is given by:...

Consider the market for wheat where demand is given by: Qd=120-4p and supply is given by: Qs=50 + 2p. Now suppose that, due to a market failure (an artificial shipping constraint), a maximum of 63.32 units of wheat can be supplied by firms in the market. The amount of the deadweight loss caused by the market failure is $__________________.

Question